(Newser)
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With a $5.5 billion payment due Sept. 30, the US Postal Service's longstanding financial woes are about to come to a head—in fact, if Congress doesn't do something soon, the agency might have to shut down entirely this winter, reports the New York Times. The USPS handles about 3 billion pieces of mail a week, but that's down 22% over the past five years. Added to declining usage, Postal Service costs are up, with strong benefits and no-layoff provisions in union contracts causing labor to account for 80% of USPS costs—as opposed to 53% at UPS and 32% at FedEx.

The agency is supposed to address Congress tomorrow to discuss options, such as repealing the no-layoff rule or ending Saturday deliveries. While the USPS hopes to cut $20 billion of the agency's $75 billion budget by 2015, observers say finding additional revenue is key. Among the suggestions, delivering wine and beer, adding advertising to trucks or in offices, and subcontracting deliveries for UPS and FedEx. “This is about one of America’s oldest institutions," says the letter carrier union president. “It survived the telegraph, it survived the telephone, and we have to do everything we can to preserve it and adapt.”

What company can't lay off employees? That has to go. If the post office wants to save itself, it should promote itself as an intown delivery system. Figure out some way to guarantee that mail in the same area will be delivered within 24 hours for the price of the stamp.

Hoofer

Sep 6, 2011 12:23 AM CDT

7 Billion in USPS debt is mandated by Congress...5.5 Billion in Future retirees health benefits (which NO other gov't OR private company has to pay) and 1.5 Billion in Work Comp payment. Post Office delivers packages for FedEx & UPS in the "Last Mile Delivery" program. Neither FedEx or UPS delivers to every address every day. It's not as easy as everyone thinks, esp when it is 90+ or you are in knee-deep snow at -23, the coldest I was ever out delivering. Most workers take pride in the job...management has taken SERVICE out of the US Postal Service and they come around and tell you that the computer says you should leave at x time and return at x time...and be prepared to explain why you are 5 minutes later than the almighty computer says you should have returned to the office.